According to a survey by Bank of America, 81% of fund managers think that; bitcoin is still a bubble even after the 35% price drop in May.
Results for the June 4-10 period are six percentage points higher than last month’s data, indicating that sentiment on Wall Street has turned more bearish.
The skepticism among the 224 surveyed fund managers comes despite new wave of institutional interest in bitcoin from hedge funds and banks, including Wells Fargo.
The survey showed that 72% of the surveyed fund managers think the recent spike in inflation is temporary. Bitcoin is often seen as a hedge asset against inflation and many crypto analysts attribute the cryptocurrency’s gains over the past year to concerns about rising inflation. So the Bank of America survey could be suggesting that those concerns have lessened a bit.
The survey also found that fund managers no longer see bitcoin bullish when compared with the “busiest market” on Wall Street. The “long commodities” are classified as the busiest trade, displacing the “long bitcoin” which ranked first in monthly surveys before May. While the price of bitcoin remains relatively stagnant after the May crash, the price of commodities like oil and iron has been on the rise.